T-Mobile US Inc (NASDAQ:TMUS) Is Aligned To Cable Company Alliance Instead Of Going Wireless

T-Mobile US Inc (NASDAQ:TMUS) is opting a merger with a cable company instead of a merger with with a fellow wireless carrier.

Alliance partner speculations

CFO Braxton Carter announced the company’s intention during a Deutche Bank Investor Conference. The market has been flooded with speculations that T-Mobile may end up forming an alliance with Sprint Corporation (NYSE:S). An alliance between T-Mobile and Sprint would most likely be the same. America would be left with only three major carriers nationally. However T-Mobile seems like it’s looking for a merger similar to AT&T Inc (NYSE:T) and DirecTV (NASDAQ:DTV). There are other speculations that Comcast Corporation (NASDAQ:CMCSA) or Charter Communications, Inc. (NASDAQ:CHTR) are likely to acquire or be acquired by T-Mobile. However neither Comcast, T-Mobile nor Charter commented in relation to the speculations.

Comcast as the likely partner for T-Mobile

T-Mobile has been benefiting on the competition recently. Tim Horan, an analyst with Oppenheimer predicted that T-Mobile is likely to pursue a merger with Comcast. He went further to state that if Comcast does not acquire T-Mobile then Charter will most likely acquire it. Charter currently is in the process of seeking approval to acquire Time Warner Cable (NYSE:TWC).

Dish likely to acquire T-Mobile

Horan is not very pessimistic on the probability of Dish Network (NASDAQ:DISH) acquiring T-Mobile. He gave the deal a 10% chance of occurrence. However, reports indicated that T-Mobile and Dish were having a stock deal negotiation that would leave T-Mobile as the minority in the merger. Without considering time, the four wireless companies are likely to form an alliance with a wireless company.

AT&T and DirecTV alliance

AT&T purchased DirecTV recently and this merger may be the impetus behind the projected alliance. AT&T declared their acquisition plans which could force Comcast into thinking about a wireless firm merger. Particularly the company merged an AT&T wireless plan adding up to four handsets and 10 GB on a monthly basis shared data with DirecTV satellite. It also involves DVR combination of up to 4 rooms. The offer is stated at $200 for a DirecTV ‘select’ bundle plan and it includes more than 145 channels and no ESPN.

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Published by Benjamin Roussey

Benjamin Roussey is from Sacramento, California. He has two master’s degrees and served four years in the U.S. Navy. His bachelor’s degree is from CSUS (1999) where he was on a baseball pitching scholarship. His second master’s degree is an MBA in Global Management from the University of Phoenix (2006). He has worked for small businesses, public agencies, and large corporations. He has lived in Korea and Saudi Arabia where he was an ESL instructor. Benjamin spends his time in between Northern California and Cabo San Lucas, Mexico, committing himself to his craft of freelance and website writing. http://www.facebook.com/ben.rouss

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